Religious Organizations Must Control 67% of Mining Shares: Permits at Risk!

Rancak Media – , JAKARTA — Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, issued a crucial reminder to religious organizations (ormas) holding Mining Business Permits (IUP): their business entities (BU) established for mining operations must maintain a minimum of 67% share ownership by the religious organization itself. This stringent requirement underscores the government’s commitment to ensuring the true beneficiaries of these economic activities are the religious organizations for whom the permits were intended.

Yuliot explicitly stated that failure to meet this 67% share threshold would lead to the revocation of the IUP. This critical stipulation is in line with the latest regulatory framework, specifically Minister of Energy and Mineral Resources Regulation Number 18 of 2025 (Permen ESDM 18/2025), which was enacted by Minister ESDM Bahlil Lahadalia on November 14, 2025.

“Religious organizations engaging in these economic activities are meant to contribute to community development from an economic standpoint. If their share ownership is minimal, the core objective of the regulation will not be achieved,” Yuliot explained during a press briefing at the Ministry of ESDM office on Friday, November 28, 2025, highlighting the fundamental purpose behind the strict ownership rules.

Consequently, Yuliot emphasized, strict limits are placed not only on share ownership but also on their transferability. “This effectively locks in the ownership. Any transfer of shares would automatically result in the revocation of the IUP,” he firmly asserted, reinforcing the non-negotiable nature of the regulation.

Furthermore, Article 28, paragraph 1 of Permen ESDM 18/2025 clarifies the scope of operations for religious organization business entities. They are permitted to apply for metallic mineral Mining Business Permit Areas (WIUP) covering a maximum of 25,000 hectares and coal WIUPs up to a maximum of 15,000 hectares.

To secure these WIUPs on a priority basis, a business entity owned by a religious organization must diligently fulfill a comprehensive set of administrative, technical, and commitment statement requirements, ensuring a robust and compliant operational framework.

Requirements for Business Entities Owned by Religious Organizations to Manage Mines:

Administrative Requirements:

1. The business entity must be structured as a limited liability company (Perseroan Terbatas Persekutuan Modal).
2. At least 67% of the business entity’s shares must be owned by religious organizations registered within the government’s religious organization information system.
3. Possession of a Business Identification Number (NIB) encompassing metallic mineral or coal mining activities, aligning with the Indonesian Standard Industrial Classification (KBLI) code for the requested commodities.
4. The business entity must be owned by a religious organization with a national scope of activities, consistent with prevailing laws and regulations governing religious organizations.
5. The religious organization owning the business entity must demonstrate active involvement in managing economic resources, preserving the environment, and upholding societal norms, values, ethics, and culture.
6. The business entity must be owned by a religious organization whose legal entity status has been verified within the business entity data system managed by the ministry responsible for governmental affairs in the legal sector.

Technical Requirements:

1. The business entity must employ experts holding certified competence in the fields of mining and/or geology.
2. A comprehensive work and financing plan for the exploration phase of activities must be in place.

Commitment Statement Requirements:

1. A demonstrated willingness to pay compensation for data information.
2. An explicit commitment not to transfer the IUP to any other party.
3. A pledge not to collateralize the IUP, including its mining commodities, to any other entity.
4. A guarantee that the religious organization’s minimum 67% share ownership composition will not be diluted throughout the period of holding the IUP.
5. A commitment to conduct mining business activities in strict adherence to good mining practices, as stipulated by prevailing laws and regulations.